YouTube will remain as an active app for Windows Phone users after Microsoft and Google reached an agreement over the app’s usage.

According to several reports, Microsoft has agreed to Google’s use of ads inside of the popular video sharing application.

Microsoft built its own YouTube application after Google failed to create an original version of its own for the mobile OS. The Google Android and Apple iOS apps are created directly by the team at YouTube and feature ads that bring the company massive amounts of revenue. Microsoft, however, removed those Google created ads, and the company was sent a cease-and-desist letter from Google executives.

Microsoft following the legal notice said it would be happy to include ads in the next version of its YouTube app. The company does admit, however, that only Google has the tools necessary to properly implement Google Ads.

“Microsoft and YouTube are working together to update the new YouTube for Windows Phone app to enable compliance with YouTube’s API terms of service, including enabling ads, in the coming weeks. Microsoft will replace the existing YouTube app in Windows Phone Store with the previous version during this time.”

Google asked that the app be removed by May 22. To meet that removal requirement, Microsoft Phone users were served the previous version of Windows Phone YouTube platform which also lacks ads.

Google and its YouTube team will not likely begin support Windows Phone until a larger user base begins buying the devices. Microsoft has struggled to gain market share in a global economy that is dominated by Apple and Google based devices.

Do you think Google should create a Windows Phone app, or does Microsoft need to prove itself more in the mobile marketplace?